2019 Economics Higher Finalised Marking Instructions

[Pages:25]National Qualifications 2019

2019 Economics Higher

Finalised Marking Instructions

? Scottish Qualifications Authority 2019 These marking instructions have been prepared by examination teams for use by SQA appointed markers when marking external course assessments. The information in this document may be reproduced in support of SQA qualifications only on a non-commercial basis. If it is reproduced, SQA must be clearly acknowledged as the source. If it is to be reproduced for any other purpose, written permission must be obtained from permissions@.uk.

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General marking principles for Higher Economics Always apply these general principles. Use them in conjunction with the detailed marking instructions, which identify the key features required in candidates' responses. (a) Always use positive marking. This means candidates accumulate marks for the

demonstration of relevant skills, knowledge and understanding; marks are not deducted for errors or omissions. (b) If a candidate response does not seem to be covered by either the principles or detailed marking instructions, and you are uncertain how to assess it, you must seek guidance from your team leader. (c) For describe questions, candidates must make a number of relevant, factual points up to the total mark allocation for the question. These should be key points; they do not need to be in any particular order. Candidates may provide a number of straightforward points or a smaller number of developed points, or a combination of these. Up to the total mark allocation for this question

award 1 mark for each accurate relevant point of knowledge award a second mark for any point that is developed from the point of knowledge.

(d) For explain questions, candidates must make a number of points that relate cause and effect and/or make the relationships between things clear, for example by showing connections between a process/situation. These should be key reasons and may include theoretical concepts. There is no need to prioritise the reasons. Candidates may provide a number of straightforward reasons or a smaller number of developed reasons, or a combination of these. Up to the total mark allocation for this question

award 1 mark for each accurate relevant point of reason award a second mark for any other point that is developed from the same reason. (e) For discuss questions, candidates must make a number of points that communicate issues, ideas, or information about a given topic or context that will make a case for and/or against. They do not always need to give both sides of the debate in their response. Up to the total mark allocation for this question

award 1 mark for any accurate point of knowledge that is clearly relevant award a second mark for any other point that is developed from the point of

knowledge.

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Marking instructions for each question SECTION 1

Question 1. (a)

(b)

Expected response

a tariff is a tax on imports/exports/goods traded internationally (1). It makes imports less attractive/more expensive or makes domestic goods more attractive (DEV) (1)

a tariff is a trade barrier (1)

less/no restrictions on trade (ID) so increased opportunity for international trade/exporting (EXP) (1) This can improve the Balance of Payments position (DEV) (1)

UK consumers have access to cheaper goods/services (ID) which means their real income increases (EXP) (1) Standards of living increase (DEV) (1)

UK firms have access to larger markets (ID) so can benefit from economies of scale (EXP) (1)

UK consumers have more choice of goods/services (ID) because countries specialise in different goods/services (EXP) (1). This improves standards of living (DEV) (1)

UK exports are cheaper (ID) which makes them more attractive abroad (1). This could lead to an improved balance of trade (DEV) (1)

free trade may reduce raw material costs for firms (ID) which may lead to lower prices for consumers (EXP) (1). This could lead to lower inflation (DEV) (1) This means the UK government may receive more Corporation Tax revenue (DEV) (1)

it means more competition for UK firms (ID) meaning efficiency could be improved (EXP) (1)

may encourage FDI into UK to take advantage of free trade (ID) which will have beneficial impact on GDP/employment (EXP) (1)

increased exports increases injections into the circular flow of income (ID) increasing economic growth potential (EXP) (1)

an economy can consume outwith its production possibility frontier (ID) accessing goods not available otherwise (EXP) (1)

Max mark

2

4

Additional guidance Award 1 mark for each valid description. Award 1 mark for a valid development.

Candidates must explain at least 2 benefits to gain full marks. Award 1 mark for each valid explanation. Award 1 mark for each valid development. Maximum 2 marks for development.

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Question (c)

Expected response

Max mark

4

Additional guidance

fully labelled diagram (axes, D, S, P and Q (or e) (1) demand curve shifting to the right (1) supply curve shifting to the left (1) P1 and Q1 (or e1) indicated (1)

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Question (d)

Expected response

to achieve higher standards of living/lift people out of poverty (1)

to increase employment/to reduce transfer payments (1) to help reduce income inequality (1) to increase profits for firms (1) to increase tax revenue (1) to attract foreign direct investment projects (1) to reduce government borrowing (1) to improve public services (1) to promote research and development spill over effects (1) to potentially increase exports improving the B of P (1) to appear better than other countries when compared/in league

tables (1)

Max mark

Additional guidance

2 Candidates must describe 2 reasons to gain full marks.

Award 1 mark for each valid description.

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Question (e)

Expected response

better infrastructure may improve geographical mobility of labour (ID) which allows vacancies to be filled, increasing output (EXP) (1)

better infrastructure improves business transport/ communications (ID) which can lower costs of production (EXP) (1) This will increase productivity/output (DEV) (1) This will increase profits for firms allowing them to expand (DEV) (1)

better infrastructure may attract FDI (ID) which can increase output/GDP (EXP) (1)

government may receive more tax revenue (ID) which can be spent on education and training so increase output (EXP) (1)

investing creates jobs and incomes in the economy (ID) which generates demand/consumer spending (EXP) (1) o this leads to further investment spending or increased AD/output/consumer spending (DEV) (1) o this creates further jobs and incomes (DEV) (1) o this triggers the multiplier effect (DEV) (1) o the formula for this is 1/1-MPC or 1/MPS (DEV) (1) o the effect is most impactful when MPC is high/MPS is low (DEV) (1)

for example, if the MPC is 0?8 (ID) then the multiplier will be 5 times (EXP) (1). If ?1 billion is spent developing infrastructure, then there will be an overall increase in national income of ?5 billion (DEV) (1)

Max mark

Additional guidance

3 Award 1 mark for each valid explanation.

Award 1 mark for each valid development.

Award 1 mark for an accurate circular flow of income diagram showing injections.

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Question 2. (a)

Expected response

day to day spending (1) ongoing/regular spending on items replaced/used up/consumed

regularly (1) examples include, nurses' wages, bandages, hospital food (DEV)

(1)

Max mark

Additional guidance

2 Award 1 mark for each valid description.

Award 1 mark for a valid development.

(b) (i)

to ensure they are provided/free to access for all (ID) as private firms will not supply them/they are non-excludable/non rivalrous/face the `free rider' problem/have no profit motive (EXP) (1)

to ensure essential services are accessible by all (ID) to maximise welfare (EXP) (1)

to ensure services such as police/street lights are provided (ID) to reduce crime/accidents (EXP) (1)

1 Award 1 mark for a valid explanation.

(ii) to ensure that they are provided to everyone (ID) as the government believes all of society deserve to benefit from them (EXP) (1)

to ensure they are provided/free to access for all (ID) as these are underprovided/under consumed by the market/can only be afforded by the rich (EXP) (1)

to ensure services such as health care and education are available to all (ID) in order to improve welfare/life expectancy/standards of living/productivity (EXP) (1)

1 Award 1 mark for a valid explanation.

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Question (c)

(d)

Expected response

PSNCR government debt/borrowing for the year (1) when annual government expenditure exceeds revenue/ annual

deficit (1) government borrowing to finance a budget deficit (1)

Max mark

Additional guidance

2 Award 1 mark for each valid definition.

National debt accumulated/total/sum of government borrowing over time (1)

Increased revenue

3 Candidates must explain at least 2 ways to gain full

UK firms may access new/larger markets (ID) which may result in

marks.

increased tax revenue from tariffs (EXP) (1)

UK firms may earn more profit (ID) which will increase

Award 1 mark for each valid description.

corporation tax revenue (EXP) (1)

increased FDI may be attracted (ID) which raises corporation tax

Award 1 mark for a valid development.

revenue/income tax revenue through job creation (EXP) (1)

increased income tax from workers (ID) working for foreign

business located in the UK (EXP) (1)

more consumption of goods (ID) means higher VAT revenues (EXP)

(1)

access to cheap labour (ID) reduces costs for firms so increased

profits will generate more corporation tax (EXP) (1)

increased air passenger duty (ID) from increased business travel

(EXP) (1)

Reduced costs public sector wage costs lower (ID) as large pool, including

foreign workers, keeps wage pressure down EXP (1) universal credit bill reduced (ID) as increased trade may bring

more jobs (EXP) (1)

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